Romby, Anna

Abstract [en]

Underskott i aktiebolag. Losses of Limited Liability Companies.

The general subject of this thesis is the tax treatment of losses incurred in limited liability companies (aktiebolag) in light of Swedish law and European law. The purpose of the thesis is to critically study the possibility for companies to equalize losses from a Swedish and EU law perspective. With regards to equalization of losses, two different aspects are referred to. The first aspect is the offset of losses over a period of time, which aims at established losses incurred by a company for one taxable year being set off against profits arising from the company for another year. The other aspect is equalization between different taxable entities, which refers to the possibility to equalize losses within a group of companies. As a consequence of the principal solutions adopted regarding equalization of losses, the question is raised whether the possibilities provided should be limited in any way. The question of limitations refers to special restrictions for established lossesin certain situations, in particular when there has been a change in ownership or incase of a merger. One consequence of permitting the utilization of losses is that the opportunities can give rise to abuse. The risk of abuse has affected the development of limitation rules. Possibilities for equalization of losses are essential components of an efficient tax system. How these possibilities are designed is dependent on the importance imposed on the different fundamental principles. Furthermore, now there is an EU legal context which did not exist when the Swedish rules were originally introduced. The EU law should be given greater importance than has been the case in Sweden so far. The risk of abuse may also be important in a critical analysis of the system, but this risk should not overshadow all other purposes. It is significant that the system of utilization of losses fulfills its objectives and that not all efforts are focused on the prevention of abuse or on discussing what Sweden must allow with respect to the EU law. Instead the focus should be shifted to the issue of which situations should be covered by the possibilities to utilize losses.